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A recent Hewitt study of nearly 200,000 U.S. workers who participate in 401(k) plans found that almost 45% are cashing out these accounts when leaving their jobs.

Employees age 20–29 were the most likely to cash out, with two-thirds asking for a distribution upon termination of employment. "Too many of these workers are not looking at their 401(k) savings as a long-term investment, but as an opportunity to spend the money when they leave their job," explains Lori Lucas, Director of Participant Research at Hewitt. The size of the 401(k) balance also influenced workers' likelihood of cashing out. Nearly three-quarters of employees with plan balances under $10,000 took the 401(k) distribution. To encourage employees to keep the money invested, Lucas suggests that employers stress the value of compounding and show how small balances can make a big impact on retirement savings.

Employers continue to lose millions of dollars each year due to disability absence costs either from work-related injuries or personal illnesses, according to a recent Hewitt survey of 77 organizations in Canada. One challenge in managing these costs is the difficulty of collecting absenteeism information, primarily because of a lack of resources such as technology and people. "Senior leadership should be concerned that this large cost is not being fully identified and measured," says Rochelle Morandini, Hewitt's Senior Organizational Health Consultant. "Organizations need reliable data to develop effective disability management and wellness programs that can help reduce absenteeism costs." The Disability Absence Index Survey allows organizations to benchmark their absenteeism rates against those of other employers, in order to develop a business case for implementing disability management and wellness programs. The survey also provides details on how different organizations are managing absence. A copy of the full report is available by contacting infocan@hewitt.com.